Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

May 8, 2017
IssuerIchigo Office REIT Investment Corporation (8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Business Administration
Tel: +81-3-3502-4891

New Loans and Interest Rate Swaps
Ichigo Office REIT decided today to borrow funds via new loans and is entering intointerest rate swaps to fix and lock-in the low interest rates on the new loans.
1. Reason for New Loans and Interest Rate Swaps
Ichigo Office REIT is strategically restructuring its portfolio by acquiring three Tokyo
office assets and selling four Tokyo non-office assets (three serviced apartments and one
retail asset) as announced in the April 26, 2017 release “Acquisition of Three Assets andSale of Four Assets.”
Using the proceeds from the asset sale, Ichigo Office REIT has completed repayment ofan existing loan with an interest rate of 1.79%, as announced in the April 28, 2017
release “Loan Repayment.” Today’s new loans will be used to finance the acquisition of
the three office assets and simultaneously lengthen Ichigo Office REIT’s loan maturity
at a weighted-average interest rate of 0.75%. The interest rate swaps will fix the interest
rates on 77% of the new loans (principal value) to hedge against any future rise ininterest rates.
2. Loan and Interest Rate Swap Details
Term Loan VIII-A
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC
JPY 1 billion
Asset acquisition
May 10, 2017
October 31, 2018
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.33% (p.a.)1
Final business day of each month following the Loan
Date (the first payment date will be May 31, 2017
and the last payment date will be the same as thePrincipal Repayment Date)
No1

Term Loan VIII-B & Swap
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
Swap Details
Counterparty
Contract Date
Fixed Interest RateSMBC
JPY 1.1 billion
Asset acquisition
May 10, 2017
November 10, 2024
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.69% (p.a.)2
Final business day of each month following the Loan
Date (the first payment date will be May 31, 2017
and the last payment date will be the same as thePrincipal Repayment Date)
NoMizuho BankMay 8, 20170.8525%3

Term Loan VIII-C
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

Mizuho Bank
JPY 400 million
Asset acquisition
May 10, 2017
October 31, 2018
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.33% (p.a.)1
Final business day of each month following the LoanDate (the first payment date will be May 31, 2017
and the last payment date will be the same as thePrincipal Repayment Date)
NoTerm Loan VIII-D & Swap
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
JPY 1 billion
Asset acquisition
May 10, 2017
November 10, 2024
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.69% (p.a.)2
Final business day of each month following the Loan
Date (the first payment date will be May 31, 2017
and the last payment date will be the same as thePrincipal Repayment Date)
NoMizuho BankMay 8, 20170.8525%32

Term Loan VIII-E
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

Shinsei Bank
JPY 200 million
Asset acquisition
May 10, 2017
October 31, 2018
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.33% (p.a.)1
Final business day of each month following the Loan
Date (the first payment date will be May 31, 2017
and the last payment date will be the same as thePrincipal Repayment Date)
NoTerm Loan VIII-F & Swap
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Shinsei Bank
JPY 900 million
Asset acquisition
May 10, 2017
November 10, 2024
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.69% (p.a.)2
Final business day of each month following the Loan
Date (the first payment date will be May 31, 2017
and the last payment date will be the same as thePrincipal Repayment Date)
NoMizuho Bank
May 8, 20170.8525%3

Term Loan VIII-G & Swap
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Resona Bank
JPY 400 million
Asset acquisition
May 10, 2017
November 10, 2024
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.69% (p.a.)2
Final business day of each month following the Loan
Date (the first payment date will be May 31, 2017
and the last payment date will be the same as thePrincipal Repayment Date)
NoMizuho Bank
May 8, 20170.8525%33

Term Loan VIII-H
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

Development Bank of Japan
JPY 2 billion
Asset acquisition
May 10, 2017
May 10, 2023
Repayment will be made in full on the Principal
Repayment Date
0.87163% (fixed)
Final business day of January, April, July, andOctober following the Loan Date (the first payment
date will be July 31, 2017 and the last payment
date will be the same as the Principal Repayment
Date)
No1

The interest rate from May 10, 2017 through May 30, 2017 will be 0.34993%.
The interest rate from May 10, 2017 through May 30, 2017 will be 0.70993%.
3
As a result of the interest rate swaps, the interest rate for Term Loans VIII-B, D, F,
and G is fixed at 0.8525%.
2

Notes:The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
In the event the interest payment date is not a business day, payment shall be made on
the next business day. If the next business day is the following month, then the payment
shall be made on the previous business day.
3. Earnings Outlook
The impact of the new loans and the interest rate swaps on Ichigo Office REIT’s
October 2017 and April 2018 period earnings is minimal. Therefore, there is no revision
to Ichigo Office REIT’s earnings and dividend forecast announced in the April 26, 2017
release “Earnings and Dividend Forecast Revisions for the October 2017 Fiscal Period
and Forecast for the April 2018 Fiscal Period.”
4. OtherRisks related to these loans have no material impact on the “Investment Risks”
described in the latest Financial Report submitted January 26, 2017.

4

Reference: Ichigo Office REIT Loan Details
Repaid Loan vs. New Loans: Interest Rates and Loan Terms
RepaidLoan

New Loans(Weighted Average)

Interest Rate

1.79%

0.75%

Loan Term

5.0 years

5.7 years

Outstanding Loan Balance (as of May 10, 2017)(JPY million)

BeforeNew Loans
(A)

After
New Loans(B)

Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

9,866

9,866

–

Long-term bank loans

86,451

93,451+7,000Total bank loans

96,317103,317+7,000–––96,317103,317+7,000

Other interest-bearing liabilities

–

–

–

Total interest-bearing liabilities

96,317103,317+7,000Bond issuanceTotal bank loans and bondissuance5

Lender Distribution (as of May 10, 2017)
ORIX Bank
2.4%

Kagawa Bank
1.8%

Nishi-Nippon CityBank
0.9%

Development
Bank of Japan
2.9%
Bank of Fukuoka
2.9%
Resona Bank
8.6%

SMBC
27.0%

Aozora Bank
9.6%

BTMU
11.0%

Mizuho Bank
17.5%
Shinsei Bank
13.0%
Mizuho Trust
1.6%

Loan Maturity Distribution (as of May 10, 2017)(JPY million)
Existing Loans

8,938

New Loans

9,563
1,600

6,867

9,574

10,233

9,639

9,629

9,633

9,623

7,263
2,000

2,949
Oct
2017

3,400

1,000700
Apr2018

Oct2018

Apr2019

Oct2019

Apr2020

Oct
2020

Apr
2021

6

Oct
2021

Apr2022

Oct2022

Apr2023

Oct2023

Apr2024

Oct2024

Apr2025